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The vendor has a growing safety hard hats business that offers add-on customized corporate logo printing for these hats. With the increase in sales volume, the vendor wants to out-source the add-on logo printing function to focus on the core hard hats business. The nature of this logo printing business is to use advanced pad printing technology to print corporate logos on hard hats.

The purchaser of the logo printing business will acquire a set of printing equipment from the vendor which allows the purchaser to start production immediately. The vendor will deliver the hard hats to the purchaser for logo printing and guarantee a minimum printing volume of 10,000 hats per year for 3 years. After printing, the purchaser will deliver the logo printed hard hats back to the vendor. The vendor will pay for the logo printing service at an agreed price with the purchaser and reimburse the purchaser for the freight cost.

The guaranteed annual minimum print volume is offered on a non-exclusive basis. This means the purchaser of the logo printing business may solicit new customers and secure other pad printing jobs to increase production level and sales revenue.

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